Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk has finally admitted that the market capitalization of the company is more than it actually “deserves,” according to a report from Financial Times.

Tesla

In an event held to inaugurate the opening of a Tesla showroom in London, Chief Executive Elon Musk said, “I think that we have quite a high valuation, and a higher valuation than we have any right to deserve.”

Market value of Tesla not proportional

The electronic vehicle maker is expecting to sell only 21,000 cars in the current year. The market value of the company is around $22 billion, which is one third the value of General Motors Company(NYSE:GM) and half of that of Ford Motor Company(NYSE:F), who sold more than 9 million cars previous year.

The California-based company, whose fans include Hollywood stars such as Cameron Diaz, has witnessed a stock price appreciation of around 400% so far this year.

Stocks vastly overvalued

Recently, Bank of America Corp (NYSE:BAC) analyst John Lovallo maintained the stock to be ‘vastly overvalued’. The analyst believes that Tesla’s stock are “vastly overvalued from a fundamental standpoint,” and he has assigned it a 12 month price target of $45, which is well below the 52 week high of $194.50, recorded a few weeks back.

Growth plans

The car manufacturer, whose impressive growth in California’s luxury car market turned many  global carmakers envious, plans to bring its cars to the mass market within three years.

Tesla Motors Inc (NASDAQ:TSLA)’s unmatchable designs and unprecedented growth has led many to compare it with Apple Inc. (NASDAQ:AAPL). The automaker recently employed a former executive of Apple to take over the evolution of its new vehicles—Doug Field, who started his career with Ford, was involved in the development of products such as MacBook Air, MacBook Pro and iMac at Apple.

Tesla’s flagship Model S has rapidly acquired environmental-friendly status in San Francisco. Model S pricing starts at $62,400 including a $7,500 federal tax credit offered on all the electric cars in US.

Tesla Motors Inc (NASDAQ:TSLA), which reported its first quarterly profit in May, came up with its IPO in 2010, seven years after it started operations.

Although the company’s rise was appreciated by green energy campaigners, analysts are in doubt on the overvaluation of its stock. Musk said Thursday that the company will achieve higher value than what it has today, but will also work to prove its worth to investors.